U.S. Will Continue Allowing Some Transactions With China's Huawei

The Trump administration placed Huawei on a trade blacklist earlier this year.

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Commerce Secretary Wilbur Ross confirmed Monday that the U.S. will extend Huawei's temporary license that allows some transactions with American companies.

The Trump administration placed the Chinese tech giant on a trade blacklist earlier this year. That restricted U.S. firms from selling components to Huawei without first getting government approval. But, the Commerce Department issued a temporary license to allow "specific, limited" transactions to support existing users.

The U.S. has long believed Huawei devices pose a national security threat. It has even pressured allies to move away from working with the telecom company. Huawei has repeatedly denied that its products pose a national security threat.

The tech company's previous temporary license was set to expire Monday, but that's now been extended until November.

Reuters called the license a "bargaining chip" for the U.S. in ongoing trade negotiations with China.